Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney to address your specific situation.
Detailed Answer
Life Insurance Proceeds When No Beneficiary Is Designated
Under Maine law, if a life insurance policy has no named beneficiary or all named beneficiaries have predeceased the insured, the insurer must pay the proceeds into the decedent’s probate estate. See 18-B M.R.S.A. §2-102 (intestate succession) and 18-B M.R.S.A. §2-801 (distribution of estate assets).
Steps to Obtain and Enforce Payment of Policy Proceeds
- Obtain Letters of Administration or Testamentary – Petition the Probate Court in the county where the decedent resided. Once appointed, the personal representative (executor or administrator) receives official letters.
- Submit a Claim to the Insurer – Provide the insurer with a certified copy of the death certificate and your letters. Request payment of the policy proceeds into the estate.
- File a Probate Inventory – Within 60 days of appointment, file an inventory listing all estate assets, including the policy proceeds you expect to receive.
- Address Insurer Refusal – If the insurer refuses to pay despite proper documentation, file a petition in Probate Court for a declaratory judgment or interpleader under Maine Rule of Probate Procedure, Rule 16, compelling the insurer to deposit the funds with the court.
- Distribute Estate Assets – Once funds enter the estate, distribute them according to the decedent’s will. If there is no will, follow Maine’s intestate succession rules at 18-B M.R.S.A. §2-102.
Distribution Under Maine Intestacy Law
If the decedent died without a valid will, the probate court distributes estate assets, including life insurance proceeds, to heirs in this order:
- Surviving spouse or reciprocal beneficiaries;
- Children;
- Parents;
- Siblings;
- More remote relatives according to statutory priority.
Helpful Hints
- Review the policy certificate to confirm beneficiary designations and contingent beneficiaries.
- Gather a certified copy of the death certificate early—insurers require it before releasing funds.
- Maintain clear records and copies of all probate filings and correspondence with the insurer.
- Notify potential heirs of your probate petition to avoid surprises or disputes later.
- Consider hiring probate counsel if the insurer or heirs challenge your role or distribution plan.
- Check for creditor claims deadlines—Maine requires notice to creditors within four months of appointment (18-B M.R.S.A. §3-101).